African Minerals Limited (AIM : AMI) has announced plans to expand on production as the current operations are expected to produce 20 million tonnes of iron ore per annum at full capacity, with this run-rate of production expected to be achieved in Q2 2013.
African Minerals is developing its Tonkolili iron ore project in Sierra Leone, with a JORC compliant resource of 12.8Bnt.
The project, which currently has a 60+ year mine-life, is being developed in a number of staged expansions.
The next stage of expansion now contemplates the production of up to 35Mtpa of 64% high grade hematite concentrate and the expansion of the current port facilities at Pepel, expected to enter production in 2016.
The Company has also developed significant port and rail infrastructure to support the operation of the project, via its subsidiary African Rail and Port Services (SL) Limited (“ARPS”), in which the Government of Sierra Leone (“GoSL”) has a 10% free carried interest.